Saturday 19 May 2012

Cancellation of Licenses

The Minister of State for Communications & Information Technology Shri Milind Deora informed Lok Sabha in a written reply yesterday that in the wake of the Supreme Court’s recent judgment ordering cancellation of licences of different telecom companies, the Department of Telecommunications have received notices from the following foreign investors : 

(i) M/s Sistema Joint Stock Financial Corporation, Russia, foreign investor in M/s Sistema Shyam Teleservices Ltd. 

(ii) M/s Telenor Asia Pte. Ltd. Singapore, foreign investor in M/s Unitech Wireless (Tamil Nadu) Pvt. Ltd. 

(iii) M/s Capital Global Limited, Mauritius and M/s Kaif Investment Limited, Mauritius, both-Mauritius based investors in M/s Loop Telecom Limited

The notices have been received under the provisions of the applicable Bilateral Investment Promotion and Protection Agreements/ Comprehensive Economic Cooperation Agreement to resolve alleged investor disputes. One of the Companies, M/s Loop Telecom Limited has demanded refund of entry fee, Performance Bank Guarantee and Financial Bank Guarantee including compensation for investment already made and also damages. 

An Inter-Ministerial Group has been constituted to evolve a coordinated response to the legal notice from M/s. Sistema Joint Stock Financial Corporation, Russia. The other notices are also being dealt with in consultation with other Ministries/Departments concerned for evolving a coordinated response of the Government in the matter. Further, certain questions of law and facts arising out of the Supreme Court judgement dated 02.02.2012 have been referred to the Supreme Court through a Presidential Reference which is listed for hearing on 10th July, 2012. 

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